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Old 12-20-2001, 09:08 AM   #1
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Lets here what you guys got to say about this.


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Old 12-20-2001, 09:10 AM   #2
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My broker just gave me a great deal on their stock....he must know something.

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Old 12-20-2001, 12:08 PM   #3
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hahaha Johnny....

I just was reading about Enron this morning. JP Morgan just estimated their losses at twice what they origionally expected. They're suing to recover about $960 million.

Enron fucked up big time, and they screwed their employees while they were at it. One employee lost $700,000 in savings because the company made them put their savings in their stock and wouldn't let anyone under 50 sell.

In the end it will all get sorted out without too much scandel I bet, but this could end up being a huge mess like the S&L of the 80's...
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Old 12-20-2001, 12:12 PM   #4
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oops, I had my numbers wrong...

Bank of NY Writes Off $235M in Loans

.c The Associated Press

NEW YORK (AP) - The Bank of New York said Thursday that it would write off $235 million in bad loans in the fourth quarter but still meet analysts' earnings estimates.

The bank said the move was part of ``an accelerated loan disposition program'' dealing with loans or loan commitments to 24 telecommunications company and one energy trading company.

Bank officials would not identify any of the troubled companies, but the Bank of New York is known to have up to $100 million in exposure to the energy trading company Enron, which is in bankruptcy proceedings, and to be heavily committed to telecom ventures, including Winstar Communications Inc., which also has filed for Chapter 11 bankruptcy protection.

The company said these 25 ``credit relationships'' involved $758 million in loan commitments and $488 million in outstanding loans.

The announcement came as J.P. Morgan Chase & Co. said its exposure to Enron was $2.6 billion - more than double what it had previously disclosed - including nearly $1 billion it says it is owed by insurance companies.

The Bank of New York said its total fourth-quarter provision, including the write-offs under its accelerated program, would be $275 million. Still, it said, it would meet the 50 cents per share earnings target of analysts surveyed by First Call/Thomson Financial. That would be down from 52 cents in the third quarter and equal to year-earlier profits.

Shares changed hands in early afternoon at $41.23, up 42 cents, on the New York Stock Exchange.

Chairman and chief executive Thomas A. Renyi said in a statement that the loan disposition program ``removes a key risk that has been overhanging our performance.''

He said the bank had ``accelerated the culling of our loan portfolio'' and will focus future lending on higher-grade credits.

Sharada Vibhakar, an analyst at Pittsburgh-based Parker/Hunter Inc., said the Bank of New York, like other financial institutions, ``is taking write-offs at the end of this year so they can have a better balance sheet going forward'' when the economy begins to recover.

``They did have a large exposure in telecommunications, and the write-off assures investors they're taking an especially hard look at this,'' she added.

Also Thursday, the Bank of New York said it will report a $175 million insurance payment in the fourth quarter stemming from damage the firm suffered in the World Trade Center attacks on Sept. 11. It said it would continue to present claims and book additional recoveries in future quarters.

The Bank of New York, the nation's 14th largest bank, is a leading retail and corporate bank with extensive financial clearing operations. The bank was forced to evacuate its headquarters building near the trade center after the attacks and deal with extensive computer problems that disrupted clearing operations for several days.
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Old 12-20-2001, 12:14 PM   #5
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here's another article...

JP Morgan seeks payment on Enron
JP Morgan Chase (JPM: news, chart) said Thursday that about $1.1 billion due it under letters of credit and surety bonds related to contracts with Enron may not be paid, increasing the firm's previously disclosed unsecured exposure to the bankrupt energy trader.
Late Wednesday, the bank sued several major insurance companies to seek payment under the surety bonds.
JP Morgan said it decided to reveal the roughly $965 million of surety bonds and about $100 million in letters of credit after "previously secured exposure became unsecured."
The problem "has caused us to review our policy for acceptance of surety bonds." See full story.
JP Morgan shares fell almost 3 percent Thursday.
Bank of New York (BK: news, chart) said it's created an program to dispose of $758 million of laons and $488 million of related expenses.
The bank said the borrowers include 24 emerging telecommunications companies and an exposure to an unidentified energy trading company.
Bank of New York also said it will take a special provision and charge-off of $235 million to create the program. It said it will take a total fourth quarter provision of $275 million.
The company will also record an initial $175 million insurance recovery related to the World Trade Center disaster in the quarter.
Together, the special items will cut fourth quarter earnings-per-share by 6 cents. Excluding the items, the company expects to meet the Wall Street consensus estimate for the fourth quarter of 50 cents a share.
"We believe that creation of this loan disposition program for these emerging telecom exposures removes a key risk that has been overhanging our performance," commented Chairman and CEO, Thomas Renyi, in a statement.
The firm's shares (BK: news, chart) rose about 0.7 percent Thursday.
KeyCorp also announced Thgursday it's cleaning up its balance sheet.
The firm said it would take a $650 million pre-tax charges ($410 million after-tax) to boost its loan loss reserves and write-down venture capital and customer derivative positions.
These charges total 96 cents per share.
UBS Warburg analyst Diane Glossman said "We are reducing our fourth quarter and full year 2001 estimates to a loss of 37 cents and profit of 78 cents, respectively, from profits of 56cents and $1.71."
She added, "We are reducing our 2002 estimate to $2.20 from $2.30, reflecting prolonged sluggishness in the economy. Our price target is $26, or 12 times our 2002 estimate."
KeyCorp shares rose modestly.
Greg Morcroft is New York news editor of CBS.MarketWatch.com.
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Old 12-20-2001, 12:15 PM   #6
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and one more...

Enron's ousted CFO obeys subpoena, meets with SEC

WASHINGTON (Reuters) - Enron Corp.'s (ENE.N) former chief financial officer has obeyed a subpoena and met with federal securities regulators investigating the collapse of the energy trading company, according to a court document.

Andrew Fastow met with officials from the Securities and Exchange Commission on Wednesday, prompting the agency to withdraw an application for an order forcing him to obey the subpoena, according to an SEC document filed in federal court in Washington.

"Today (Dec. 19) Mr. Fastow appeared pursuant to the subpoena served upon him on Oct. 31, 2001," it said.

An SEC spokesman declined to provide details about the meeting. The commission does not usually make public comments about active investigations.

Fastow is being represented by David Boies, who led the Justice Department's antitrust fight against Microsoft Corp. (MSFT.O).

The SEC is examining conflict-of-interest issues surrounding Fastow's involvement in off-balance sheet partnerships that he created and managed from both sides of the table, earning some $30 million in management fees from the deals as well as his Enron salary.

Once the world's dominant energy trader, Enron is currently in bankruptcy protection, the largest in U.S. history.

Its shares were down 3 cents to 41 cents in afternoon trading on the New York Stock Exchange, down sharply from an August 2000 high of $90.
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Old 12-20-2001, 12:32 PM   #7
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Their employees now have nothing.

Their executives managed to pocket over 107 Million dollars from company stock while conspiring to misrepresent Enron's earnings.

20 years in prison sounds good to me.
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Old 12-23-2001, 12:07 PM   #8
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What was Enron anyway? I hate that the news talks about these things as if we've been there the whole time...

Taste is the enemy of art.

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